March 25, 2021
Since the COVID-19 crisis led to our country’s shutdown and the passage of the Families First Coronavirus Response Act (FFCRA) on March 18, 2020, FNP has advocated for 100% relief of all COVID-19 related unemployment claims on behalf of reimbursable nonprofit, governmental and tribal employers across the country.
Remarkably, this pandemic resulted in the filing of more than 60 million claims across the country! To counteract the administrative crush of massive claim filings and ensure that qualified claimants could quickly apply and collect unemployment benefits, federal and state laws were swiftly modified. While these timely changes brought necessary relief to some individuals, it left many reimbursable employers with unprecedented, and unforeseen levels of unemployment benefit charges.
Subsequently, the Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act, was signed into law on March 27, 2020 adding additional assistance for states, employers, and individuals. Helpfully, a feature of this economic stimulus provided 50% relief of COVID-19 related unemployment claims for reimbursable nonprofit employers BUT had problematic guidance from the U.S. Department of Labor, by requiring nonprofits to fully reimburse states upfront for this overwhelming cost.
First Nonprofit responded immediately and began a grassroots lobbying effort engaging our members and partners to express concern regarding the burdensome and unintended harsh treatment of reimbursing nonprofit, governmental and tribal employers. We led the way to mobilize others in field and organizations serving nonprofits at the state and national level to create the Nonprofit Unemployment Insurance Relief Coalition (NUIRC) as an advocate for more equitable and consistent treatment of reimbursing employers, specifically asking for 100% relief of pandemic related charges and correction of the guidelines issued by the USDOL requiring full reimbursement of claims that were subject to 50% relief in the CARES Act. NUIRC, with participants that include many of our state association and national partners, engaged lobbyists and recruited other supporters to encourage Congress and individual state legislatures to consider a more just treatment of reimbursing nonprofit, governmental and tribal employers. Several members of FNP programs and members of our Advisory Board participated in delivering this message to both Congress and elected officials in their own states.
The unified effort had far reaching effects on behalf of reimbursable nonprofit, governmental and tribal employers across the country. With the hard work and support of many including NUIRC and the National Council of Nonprofits (NCN), Congress passed the “Protecting Nonprofits from Catastrophic Cash Flow Strain Act” in July of 2020, providing cash flow assistance to reimbursable employers across the country and correcting the language that required state unemployment agencies to invoice reimbursing employers at 100% before receiving the 50% Federal relief payment. And subsequent extensions of the 50% relief and other relief measures in the CARES Act were passed. But it was not until 2021 that these advocacy efforts resulted in Congress increasing the amount of Federal relief for reimbursing employers.
The “American Rescue Plan Act”, signed into law on March 11, 2021, continues to provide 50% benefit charge relief through March 31, 2021 and then increases benefit charge relief from 50% to 75% from April 1 through September 6, 2021. It also extends other Federal relief for reimbursing employers that has been in place. More specific detail on the ARP Act can be found here.
Be assured that First Nonprofit continues to work to closely with our nationwide network of claims administration partners to ensure that our customers are:
We will also continue to advocate via NUIRC to encourage states to provide the additional relief needed to cover 100% of charges attributable to the pandemic from funds allocated to them for discretionary use by the ARP Act.
First Nonprofit has saved us so much money over the state’s program. We had one little glitch with the state recently and we contacted FNP immediately. FNP staff called us back immediately and moved to remedy the problem.
First Nonprofit has been a great partner. They have helped us saved hundreds of thousands of dollars! They have awesome resources for our nonprofit organization. Thanks for the partnership.
Life is certainly busy these days but having business partners like First Nonprofit has made some of the process hassle free. We have worked with this team for years. When we changed payroll systems, they outlined every step. I think this team is terrific and I know they get the job done! Thank you, Cruz, to all the team at FNP.
FNP has helped our agency to save thousands of dollars every year on our unemployment coverage. The service is phenomenal, and we are thankful to their team as our partner. My experience working with Marshall on the advocacy around UE for nonprofits was also a highlight as someone who teaches advocacy and lobbying for nonprofits. Really, your whole team is top shelf, so thank YOU!
Chicago Children’s Theatre has greatly benefited from our partnership with First Nonprofit, and I have always enjoyed working with the staff on our filings and any complicated questions. I would not hesitate to recommend First Nonprofit to fellow nonprofits. We’re very happy customers.
FNP is a great resource for Daniel Kids. To have a TPA that we can count on to take point on not only managing our unemployment claims, but to support and guide any protest hearing, is invaluable. All the professional support staff we have worked with have been excellent, very knowledgeable and responsive. We are grateful for the help and support, thank you.
When I first began in my position at my organization, I hadn’t had experience working with a company like FNP. The staff was so patient and helpful in helping to explain the benefits of First Nonprofit. Anytime I reach out with a question I receive a quick, clear, and thorough response. I’m so thankful that we decided to partner with FNP. Their excellence in customer service, coupled with their variety of packages frees us up to truly serve our staff and community with a peace of mind knowing that our organization is protected against unanticipated unemployment insurance expenses.
First Nonprofit gets an A+ in my book. You are so easy to work with & very knowledgeable! Whether it is my quarterly correspondence with Kim or my random interactions with Dawn about a bond … I am so pleased that I get to work with such a helpful company. Thank you!